Denmark Is an Importer of Computer Chips,taking the World Price

question 154

Multiple Choice

Denmark is an importer of computer chips,taking the world price of $12 per chip as given.Suppose Denmark imposes a $5 tariff on chips.Which of the following outcomes is possible?

• A)More Danish-produced chips are sold in Denmark.
• B)More foreign-produced chips are sold in Denmark.
• C)Danish consumers of chips become better off.
• D)Total surplus in the Danish chip market increases.

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Definitions:

Sustainable Innovation

Innovation focused on creating new products or processes that meet current needs without compromising the ability of future generations to meet their needs.

Reducing Risks

Implementing strategies and measures to minimize potential harm or losses in various contexts, such as financial investments or business operations.

Sustainable Value Chain

A value chain approach focusing on long term resilience and environmental sustainability, aiming to minimize negative impacts.

Fossil Fuels

Natural fuels such as coal, oil, and natural gas, formed from the remains of living organisms and serving as a major global energy source.